Question

Why banks use collateral as a guarantee until the loan is repaid ?

Answer 1

ANSWER....

bank ask for Collateral while giving credit to border because if the borrower fails to repay the loan the bank has right to use or sell the Collateral given to him by the body was so that they can get money which they gave him as a loan. if the borrower givess loan in time that the bank give Collateral back to borrower.



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